Bitcoin [BTC] Price to Form New 2018 Lows After Bear Flag?

Bitcoin [BTC] technical analysis for 6th December 2018. With Bitcoin dropping significantly over the past 24 hours, we analyze the possibility of price forming new lows and possibly continuing to $3000.

For the past few days, Bitcoin had been consolidating just below the key $4000 level. In yesterdays analysis, we noted that this was more of a bearish set-up and makes the price more susceptible to dropping from that point.

A drop followed, and we have seen price move from consolidating around $3900 to trading around $3600 today. The low for 2018 was formed around $3500, and this most recent drop makes a new low a strong possibility. A new low forming would result in their being a strong chance of price potentially continuing its bearish movements to $3000. $3000 is noted as a key area for price action being both a round psychological number and an area of important trading activity in 2017.

Bitcoin Daily Chart – Source: Tradingview.com

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The drop which is after taking place successfully executes a bear flag on the weekly chart. The candle for last week formed as a Doji. A Doji is a candle where the open is around the same point as the close and reflects uncertainty on the side of traders. Although there were more bullish market movements last week, traders were likely cautious to drive the price up fearing a return to bearish market conditions that we are seeing today.

The drop over the past day is extremely bearish for the outlook of Bitcoin. It is taking place on significant volume, and from a technical standpoint, it makes bullish movements from here far less likely. The weekly RSI and MACD are decreasing reflecting the strong seller momentum.

Bitcoin Weekly Chart – Source: Tradingview.com

Key Takeaways:

Bitcoin has returned to recording bearish market movements after consolidating below the key $4000 level.

New 2018 lows are highly likely for Bitcoin, and $3000 is also a strong possibility.

DISCLAIMER:Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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After discovering bitcoin in 2015, John fell down the cryptocurrency rabbit hole and was swallowed whole. He made the move to lovely Lisboa at the start of 2018 and started working with cryptocurrencies and blockchain full-time.